7.30.2010

the possible successor to warren buffet

Here's an interesting Wall Street Journal profile on hedge-fund manager Li Lu, who is currently in line to become a successor to Warren Buffet (you know, the gajillionaire investor/industrialist/philanthropist) at Berkshire Hathwaway Inc.: From Tiananmen Square to Possible Buffett Successor.

Mr. Li, 44 years old, has emerged as a leading candidate to run a chunk of Berkshire's $100 billion portfolio, stemming from a close friendship with Charlie Munger, Berkshire's 86-year-old vice chairman. In an interview, Mr. Munger revealed that Mr. Li was likely to become one of the top Berkshire investment officials. "In my mind, it's a foregone conclusion," Mr. Munger said.

The job of filling Mr. Buffett's shoes is among the most high-profile succession stories in modern corporate history. Mr. Buffett, who will turn 80 in a month, says he has no current plans to step down and will likely split his job after he leaves the company into separate CEO and investing functions. Mr. Li's emergence as a contender to oversee Berkshire investments is the first time a name has been identified to fill the investment part of Mr. Buffett's legendary role.

The development illustrates that Berkshire is moving toward putting in place—possibly sooner than investors anticipated—certain aspects of its succession plan.

Li spent his childhood shuttling between foster families after his mother and father were sent to labor camps during the Cultural Revolution. After the Tiananmen Square protest, he escaped and eventually made his way to the United States. Now he's one of the top candidates to manage Berkshire's $100 billion portfolio.